The idea of an incentive trip isn’t new. Often, we hear about big name companies who take their hard working teams on an amazing trip, whether it’s to the majestic Swiss Alps or the turquoise waters of the Caribbean.
Sometimes these trips even go to exciting, culture-driven cities in the U.S. like Nashville, Austin, New Orleans, or even our hometown of San Diego. All the while, the rest of the business world looks on and thinks: “The only way they can do this is because they have an endless budget and tons of cash to throw around.”
I’m here to tell you that isn’t true—big, bold incentive trips aren’t reserved for the elites. In this blog, we’ll show you how to plan an incentive trip that pays for itself while also offering a wealth of other benefits, whether you’re a team of 10 or 1,000.
Benefits of an Incentive Trip
It’s easy to get caught up looking at the budget and how much money an incentive trip might cost your company. However, it’s important you examine the full ROI and, instead, flip the script to see how much value an incentive trip might add in the long run.
Before we dive into how you can build an incentive trip that pays for itself, let’s quickly run through these benefits:
Retention
If you want to retain your employees, you need to keep them engaged in their work and happy. To do that, they need to be incentivized for their efforts. Hence, “incentive trip.”
The beauty of an incentive trip is that it gives everyone a goal to work towards, provides a tangible payoff for those who go above and beyond, and boost morale: all things that directly affect employee retention. Plus, staff members expect the annual trip and are less likely to jump ship if they know it’s on the horizon.
Honestly, there are few things more energizing for your staff than the thought of their hard work buying them time relaxing in a boutique beach hotel, warming up in one of the best chalets in Europe, or heading out on a big adventure.
Reward and Appreciation
People love being rewarded and appreciated for their efforts, but simply handing everyone a participation trophy does more harm than good. Instead, you’ve got to highlight the dedication and sacrifice for the people crushing it in the trenches day-in and day-out.
It’s also not always easy to be tuned into all the little wins they have week after week, or month over month. Rewarding these hard workers with an incentive trip shows that you care for them, appreciate their effort, and want to keep them around as an invaluable member of your team.
Motivation
Scoring a big paycheck, bonus, or commission check is a strong motivating factor. But you have an opportunity to amplify that motivation even further by staking out a lofty goal that has an even bigger payoff in the form of an incentive trip.
This accelerates motivation for the individual as they work harder to hit their personal goals. However, it also motivates an entire team, uniting them to score a spot on this fully paid vacation alongside their best work friends. Nobody wants to be left behind while everyone else goes to have fun.
Recruitment
Your incentive trip is also a differentiating factor when it comes to recruitment. Everyone compares compensation, benefit packages, time off, and remote work. Not everyone is able to boast a kickass annual incentive trip to potential employees.
To be clear, this isn’t just bragging during interviews. It’s actually pretty important because you may not always have the funds to beat out another company’s salary offer. But your incentive trip can, even if you have to go a little lower on the salary side.
Branding and Marketing
People are on their smartphones constantly, posting to different social media channels or engaging with their networks. There’s no better marketing than word-of-mouth and influencer marketing, and your incentive trip is the perfect platform to grow your impact in this area.
Your staff is going to post countless pictures and videos about their experience on the incentive trip which drives awareness to your company among recruitment candidates, creates brand affinity for the public, and further motivates the rest of the team who may not have qualified for the trip this year. For added benefit, create a special hashtag for the trip that everyone can use as they post, and ask them to tag your company where appropriate.
Revenue
Each team member has their sales goal, and they might make a bonus in addition to their salary or receive commission for the production once they hit that goal. But what happens when they overachieve and produce 20%, or even 50%, over the goal?
Sometimes companies will cap how much bonus or commission money can be made after hitting a certain percentage of their goal. This isn’t a good business tactic though, as it encourages your team to sandbag their progress until the next quarter or year.
You should encourage your staff to always be selling. And if you can’t shell out major cash bonuses or commissions, the incentive trip is a strong factor that will help push your team to overachieve your revenue goals and ultimately increase your company’s bottom line.
Plan an Incentive Trip That Pays for Itself
The benefits of an incentive trip are abundantly clear, but there’s still the question of how to plan one without breaking the bank. If you structure it right, you’ll find the trip will actually pay for itself. Here’s how.
Let’s say, for the purpose of example, that you have 10 employees each with a revenue goal of $1 million. Those who hit 10% to 20% over their goal qualify for your “Stretch Club” or “President’s Club.” And it’s 2020, so don’t be afraid to pivot away from these somewhat stale club titles. Brand yours in a way that’s both creative and relevant to your company—make it your own.
Now, taking the minimum end of the range here, at 10% over their $1 million quota, these 10 employees have just generated an additional $1 million in revenue for you. That is, you have an extra $1 million to do whatever you want with!
For one, you should use this money to plan an insane incentive trip. But it goes beyond just the trip as well. You can re-invest that capital into your business by hiring new employees, strengthening operations, increasing marketing spend, or purchasing new tools.
I can’t help you determine which areas of your company need more money, but I can help you plan the most banging incentive trip you’ve ever been on for under $100,000. If you partner with Luxpitality, that price tag will cover everything like airfare, hotels, transportation, welcome receptions, award dinners, activities, and food and beverages for three to five nights. Luxpitality has helped tons of companies save on their annual retreats.
Oh, and guess what? That price also includes the cost of everyone bringing a plus one or significant other. If you’re ready to talk, we’re ready to help you plan an incentive trip that blows all expectations out of the water.